System and method for completing a transaction with a payment terminal

ABSTRACT

A method of completing a transaction with a payment terminal involves the payment terminal transmitting to a network gateway via a first communications network a transaction proposal identifying a proposed transaction with a network device, and receiving from the network gateway a transaction proposal response in response to the transaction proposal. The transaction proposal response specifies a pointer to the proposed transaction. The network gateway is configured to authenticate to the network device via a second communications network that comprises the network device. The payment terminal transmits over a payment network, distinct from the communications networks, payment particulars for the proposed transaction, and receives from the payment network a payment confirmation in response to the payment particulars. In accordance with the payment confirmation, the payment terminal initiates completion of the proposed transaction by generating a transaction completion request and transmitting the transaction completion request to the network device via the network gateway. The transaction completion request is generated from the transaction pointer, and requests completion of the proposed transaction with the network device.

RELATED APPLICATIONS

This patent application claims the benefit of the filing date of U.S.patent application No. 61/615,168, filed Mar. 23, 2012, entitled “Systemand Method for Authenticating a Payment Terminal”.

FIELD

This patent application relates to systems and methods forcommunications terminal authentication. In particular, this patentapplication describes systems and methods for authenticating a paymentterminal and for completing a transaction with a payment terminal.

BACKGROUND

Many merchants provide electronic payment terminals to allow customersto purchase goods and services by means other than cash payment. Thepayment terminals are connected to a secure payment (acquirer) networkwhich interfaces with the merchants' respective financial institutions.The payment terminals are deployed with proprietary software that usesthe acquirer network to securely process electronic payments via paymentaccount information received from hardware tokens (e.g. credit cards,debit cards) that may be interfaced with the payment terminals.

Merchants often locate inexpensive wares in close proximity to checkoutlanes to increase the likelihood of impulse purchases. Dunstan (WO2010/012094) expands upon this idea by using a central computer serveras a trusted intermediary between the acquirer network and a secondnetwork to allow customers to use the payment terminals to accesscomputer servers on the second network. The central server allows thecomputer servers of the second network to apply their security serviceson the acquirer network. The acquirer terminals are provided with aterminal application that supplements or replaces the existingproprietary software deployed on the acquirer terminals. The terminalapplications allow the acquirer terminals to be used on the secondnetwork via the security services imposed by the central server.However, since the central server is controlled by a third party, andthe terminal applications communicate with the acquirer network and thecentral server, the security of the acquirer network can becomecompromised by rogue software installed on the central server.

SUMMARY

By way of overview, in a first aspect this disclosure relates to amethod of authenticating a payment terminal. The first aspect of thisdisclosure also relates to a payment terminal, and a computer-readablemedium having computer processing instructions stored thereon thatimplement the payment terminal and the method of authenticating apayment terminal.

The method of the first aspect of this disclosure involves the paymentterminal generating a terminal activation request from a privateencryption key, and from at least one terminal credential that isuniquely associated with the payment terminal. The terminal activationrequest includes a public encryption key. The public encryption key andthe private encryption key comprise an asymmetric encryption key pair.

The payment terminal transmits the terminal activation request to acertificate server, and receives an activation response from thecertificate server in response to the terminal activation request. Theactivation response includes a digital authentication certificate. Thedigital authentication certificate includes the public encryption key.The payment terminal authenticates to a computer server, distinct fromthe certificate server, using the digital authentication certificate.

In a second aspect, this disclosure relates to a method ofauthenticating a payment terminal. The second aspect of this disclosurealso relates to a certificate server, and a computer-readable mediumhaving computer processing instructions stored thereon that implementthe certificate server and the method of authenticating a paymentterminal.

The method of the second aspect of this disclosure involves acertificate server receiving a terminal activation request from apayment terminal. The terminal activation request includes a digitalsignature and a public encryption key. The certificate server determinesa validity of the terminal activation request by verifying that thedigital signature was generated from a private encryption key uniquelyassociated with the payment terminal and that the public encryption keyand the private encryption key comprise an asymmetric encryption keypair.

In accordance with the terminal activation request validity determining,the certificate server generates an activation response in response tothe terminal activation request and transmits the activation response tothe payment terminal. The activation response comprises a digitalauthentication certificate that includes the public encryption key andfacilitates authentication of the payment terminal to a computer server,distinct from the certificate server.

In a third aspect, this disclosure relates to a method of networkgateway authenticating. The third aspect of this disclosure also relatesto an authentication network, a network gateway, and a computer-readablemedium having computer processing instructions stored thereon thatimplement the network gateway and the method of network gatewayauthenticating.

The method of the third aspect of this disclosure involves a networkgateway receiving an authentication request from a communicationsterminal. The communications terminal is in communication with anidentity token. The authentication request includes a token cryptogramgenerated from a cryptographic key stored on the identity token. Thenetwork gateway transmits the authentication request to a communicationsnetwork, and receives an authentication response from the communicationsnetwork in accordance with a validity of the token cryptogram. Theauthentication response includes a gateway authentication certificate.The gateway authentication certificate is configured to authenticate thenetwork gateway to a network device of the communications network.

The authentication network of the third aspect of this disclosure,comprises a communications terminal and a network gateway. Thecommunications terminal includes a token interface for interfacing anidentity token with the communications terminal. The network gateway isin communication with the communications terminal, and is configured to(i) receive an authentication request from the communications terminal,and (ii) transmit the authentication request to a communicationsnetwork. The authentication request includes a token cryptogramgenerated from a cryptographic key stored on the identity token. Thenetwork gateway receives an authentication response from thecommunications network in accordance with a validity of the tokencryptogram. The authentication response includes a gatewayauthentication certificate that is configured to authenticate thenetwork gateway to a network device of the communications network.

In a fourth aspect, this disclosure relates to a method of completing atransaction with a payment terminal. The fourth aspect of thisdisclosure also relates to a payment terminal, and a computer-readablemedium having computer processing instructions stored thereon thatimplement the payment terminal and the method of completing atransaction with a payment terminal.

The method of the fourth aspect of this disclosure involves a paymentterminal transmitting to a network gateway via a first communicationsnetwork a transaction proposal identifying a proposed transaction with anetwork device, and receiving from the network gateway a transactionproposal response in response to the transaction proposal. Thetransaction proposal response specifies a pointer to the proposedtransaction. The network gateway is configured to authenticate to thenetwork device via a second communications network that comprises thenetwork device.

The payment terminal transmits over a payment network, distinct from thecommunications networks, payment particulars for effecting payment forthe proposed transaction, and receives from the payment network apayment confirmation in response to the payment particulars. Inaccordance with the payment confirmation, the payment terminal initiatescompletion of the proposed transaction by generating a transactioncompletion request and transmitting the transaction completion requestto the network device via the network gateway. The transactioncompletion request is generated from the transaction pointer, andrequests completion of the proposed transaction with the network device.

In one variation, the method of completing a transaction involves anetwork gateway receiving from the payment terminal a transactionproposal identifying particulars of a proposed transaction with thenetwork device, and transmitting to the payment terminal a transactionproposal response in response to the transaction proposal. Thetransaction proposal response specifies a pointer to the proposedtransaction and includes an indication of the payment particulars forcompletion of the proposed transaction. The network gateway isconfigured to authenticate to the network device via a communicationsnetwork that comprises the network device.

The payment terminal uses the indication of payment particulars toeffect payment for the proposed transaction, and then transmits atransaction completion request to the network gateway. The transactioncompletion request requests completion of the proposed transaction withthe network device. The payment terminal generates the transactioncompletion request from the transaction pointer.

The network gateway generates a transaction request message from thetransaction completion request, and transmits the transaction requestmessage to the network device via the communications network. Thetransaction completion request identifies the particulars of theproposed transaction.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing aspects of this disclosure will now be described, by wayof example, with reference to the accompanying drawings, in which:

FIG. 1 is a block diagram that illustrates the various components of theauthentication network;

FIG. 2 is a schematic view of the communications terminal of theauthentication network;

FIG. 3 is a schematic view of the certificate server of theauthentication network;

FIG. 4 is a schematic view of the network gateway of the authenticationnetwork;

FIG. 5 is a message flow diagram that depicts, by way of overview, thecommunications terminal authenticating method implemented by theauthentication network;

FIG. 6 is a message flow diagram that depicts, by way of overview, thenetwork gateway authenticating method implemented by the authenticationnetwork;

FIG. 7 is a message flow diagram that depicts, by way of overview, thetransaction completion method implemented by the authentication network;

FIG. 8 is a is a detailed message flow diagram that depicts a sampleembodiment of the terminal activation method implemented by theauthentication network;

FIG. 9 is a detailed message flow diagram that depicts a sampleembodiment of the certificate renewal method implemented by theauthentication network;

FIG. 10 is a detailed message flow diagram that depicts a sampleembodiment of the gateway setup method implemented by the authenticationnetwork;

FIG. 11 is a detailed message flow diagram that depicts a sampleembodiment of the terminal validation method implemented by theauthentication network; and

FIG. 12 is a detailed message flow diagram that depicts a sampleembodiment of the transaction processing method implemented by theauthentication network.

DETAILED DESCRIPTION

Authentication Network—Overview

Turning to FIG. 1, there is shown an authentication network, denotedgenerally by reference number 100, that includes a communicationsterminal 200 and a network gateway 400. Preferably, the authenticationnetwork 100 also includes a certificate server 300 and a terminalmanagement server 350. Although the authentication network 100 is showncomprising only a single communications terminal 200, typically theauthentication network 100 includes a plurality of the communicationsterminals 200.

Similarly, although the authentication network 100 is shown comprisingonly a single certificate server 300 and a single network gateway 400,the authentication network 100 may include a plurality of certificateservers 300 and/or a plurality of the network gateways 400. Further,although the network gateway 400 is depicted as a monolithic networkcomponent, the functionality of the network gateway 400 may be splitamongst multiple network components or servers.

The communications terminal 200 typically comprises a wireless or wiredcommunications device, such as a personal or tablet computer, a mobilephone, a smartphone or a personal digital assistant (PDA). Preferably,however, the communications device is implemented as a payment terminaland is configured to interface with an identity token 210 and/or to anelectronic cash register (ECR). As non-limiting examples, the paymentterminal may comprise an integrated point-of-sale (POS) terminal, or apin-pad terminal that communicates with a POS terminal. Alternately, thepayment terminal may comprise an automated teller machine (ATM), orautomated banking machine (ABM). The communications terminal 200 and theidentity token 210 will be discussed in further detail below.

The certificate server 300 may be implemented on one or more computerservers, and is configured to communicate with the communicationsterminal(s) 200 via a first communications network 102. Typically, thefirst communications network 102 comprises a wireline or wirelesspacket-switched (e.g. interne protocol or “IP”, 3G, 4G) orcircuit-switched network (e.g. public switched telephone network or“PSTN”). The certificate server 300 is also configured to facilitateauthentication of the communications terminal(s) 200 to the networkgateway 400, by issuing terminal authentication certificates to thecommunications terminals 200.

The terminal management server 350 may include a database of records,each associated with a respective communications terminal 200. As willbe discussed below, the certificate server 300 may make use of theterminal management server 350 to validate the communications terminals200.

The network gateway 400 may be implemented on one or more computerservers, and is configured to communicate with the communicationsterminal(s) 200 via the first communications network 102 and toauthenticate the communications terminal(s) 200. Preferably, the networkgateway 400 is separate and distinct from the certificate server 300. Ifthe authentication network 100 includes a plurality of the networkgateways 400, each network gateway 400 may communicate with a respectiveportion of the communications terminal(s) 200 via a respective firstcommunications network 102.

As will be explained in further detail below, the network gateway 400 isalso configured to authenticate itself to a second communicationsnetwork 104, that is distinct from the first communications network 104,and thereby allow users of the communications terminals 200 to completeonline transactions with network devices 500 of the secondcommunications network 104. Typically, the second communications network102 comprises a packet-switched network, and the network device 500comprises a computer server.

One of more of the communications terminals 200 also be configured tocommunicate with a secure payment network 106, that is distinct from thecommunications networks 102, 104, to thereby effect payment for theonline transaction. As non-limiting examples, the secure payment network106 may comprise VisaNet, the Mastercard Network, and/or the merchant'spayment card acquirer network.

As used herein, an “online transaction” is any e-commerce or otherelectronic transaction (e.g. purchase of goods/services, bill payment,funds transfer, bank account or credit card balance query) that isprovided by a network device. In a preferred implementation, thecommunications terminal 200 is a payment terminal, the network device isa computer server, and the online transaction involves using the paymentterminal 200 to purchase lottery tickets from the computer server. Itshould be understood, however, that the invention described herein isnot so limited to this particular implementation.

Communications Terminal/Identity Token

As mentioned, the communications terminal 200 is typically implementedas a wireless or wired payment terminal. As shown in FIG. 2, thecommunications terminal 200 includes a user interface/input device 202,a display device 204, a first network interface 206 a, a second networkinterface 206 b, and a computer processing unit 208 that is coupled tothe input device 202, the display device 204 and the network interfaces206 a, 206 b. Preferably, the input device 202, the display device 204,the network interfaces 206 a, 206 b and the computer processing unit 208are integrated together within a common housing. The communicationsterminal 200 may also include a contact/contactless token interface 209that is coupled to the computer processing unit 208 and is configured tocommunicate with the identity token 210.

The input device 202 may be implemented as a keyboard, touchpad, and/ortouchscreen and/or other input device suitable for allowing an operatorof the communications terminal 200 to input data and/or commands intothe communications terminal 200. The display device 204 may comprise aliquid crystal display (LCD) panel, cathode ray tube (CRT) display,plasma display panel, and/or paper printer and/or other output devicesuitable for displaying information to the operator of thecommunications terminal 200.

The first network interface 206 a interfaces the communications terminal200 with the first communications network 102. The second networkinterface 206 b interfaces the communications terminal 200 with thesecure payment network 106.

The computer processing unit 208 may include a microprocessor 212 andcomputer-readable medium 214. The computer-readable medium 214 may beprovided as electronic computer memory (e.g. FLASH memory) that maystore one or more credentials (“terminal credentials”) that are uniquelyassociated with the communications terminal 200. As non-limitingexamples, the terminal credentials may comprise a terminal identifier(terminal ID) and/or a serial number of the communications terminal 200.The memory 214 may also store computer processing instructions storedthereon which, when executed by the microprocessor 212, define anoperating system (not shown) that allows the communications terminal 200to accept user input from the input device 202 and to control thedisplay device 204 and the token interface 209. Preferably, the computerprocessing instructions also define a payment processor 216 which allowsthe operator of the communications terminal 200 to use the paymentnetwork 106 to pay for a transaction.

The identity token 210 typically comprises a self-contained integratedcircuit device that includes a built-in micro-controller and protectedmemory. The micro-controller and protected memory together provide asecure self-contained computing environment for running cryptographic(e.g. data encryption standard (DES), triple-DES, advanced encryptionstandard (AES)) algorithms.

The identity token 210 may have a contactless (e.g. NFC and/or ISO 14443based) form factor, and may communicate with the communications terminal200 via a wireless protocol, such as ISO 14443. For example, theidentity token 210 may be implemented as a contactless smartcard orintegrated circuit card (e.g. credit card, debit card) or within awireless telephone or wireless data messaging device, and the tokeninterface 209 may be configured to communicate with the identity token210 using near-field communication or Bluetooth. Alternately, theidentity token 210 may have a contact form factor, and may interfacedirectly with the communications terminal 200. For example, the identitytoken 210 may be implemented as a contact-style smartcard or integratedcircuit card (e.g. credit card, debit card). The token interface 209 maybe configured to communicate with the identity token 210 via a physicalport (e.g. card reader) of the communications terminal 200.

Typically, the protected memory of the identity token 210 is configuredwith a cryptographic key (“token cryptographic key”) and one or morecredentials (“administrator credentials”) that were uniquely assigned tothe intended recipient of the identity token 210 by the issuer of theidentity token 210. As non-limiting examples, the administratorcredentials may comprise an administrator identifier (“sysID”) and/or anadministrator passcode. The administrator credentials and tokencryptographic key may be stored in the protected memory at the time theidentity token 210 is manufactured or prior to delivery of the identitytoken 210 to the intended individual.

Preferably, the administrator credentials and the stored tokencryptographic key are uniquely associated with the identity token 210.Further, typically the stored token cryptographic key is a privatecryptographic key that is not publicly available, but is either known orcan be re-generated only by the issuer of the identity token 210. Aswill be discussed below, the identity token 210 may use theadministrator sysID and the token cryptographic key in the cryptographicalgorithms to generate cryptograms (“token cryptograms”) that are usedby the second communications network 104 to authenticate thecommunications terminal 200 to the second communications network 104.

The computer processing instructions of the memory 214 may define aterminal authentication processor 218 that allows the communicationsterminal 200 to authenticate to the network gateway 400, and atransaction processor 220 that allows the communications terminal 200 tocomplete a transaction with a network device 500 of the secondcommunications network 104. Although the terminal authenticationprocessor 218 and the transaction processor 220 may be implemented ascomputer processing instructions, all or a portion of the functionalityof the terminal authentication processor 218 and the transactionprocessor 220 may be implemented instead in electronics hardware.

The terminal authentication processor 218 is configured to generate aterminal activation request from a private encryption key (activationcode) and from at least one of the terminal credentials (e.g. terminalID, terminal serial number) that are uniquely associated with thecommunications terminal 200. As will be discussed below, theadministrator of the communications terminal 200 may manually input theprivate encryption key (activation code) into the communicationsterminal 200 via the input device 202. Alternately, the activation codemay be stored on an identity token (e.g. identity token 210), and theadministrator may input the activation code into the communicationsterminal 200 by interfacing the identity token with the communicationsterminal 200.

The terminal activation request includes a public encryption key.Preferably, the public encryption key and the activation code comprisean asymmetric encryption key pair. The terminal authentication processor218 may implement a cryptographic (e.g. data encryption standard (DES),triple-DES, advanced encryption standard (AES)) algorithm, and maygenerate the public encryption key from the activation code. Preferably,the terminal activation request also includes at least one of theterminal credentials, and the terminal authentication processor 218 usesthe activation code and the cryptographic algorithm to digitally-signthe terminal activation request.

The terminal authentication processor 218 is configured to transmit theterminal activation request to the certificate server 300, and to savein the memory 214 an activation response that is received from thecertificate server 300 in response to the terminal activation request.The activation response includes a digital terminal authenticationcertificate. The terminal authentication certificate includes the publicencryption key that was included with the terminal activation request.Typically, the terminal authentication certificate is digitally-signedby the certificate server 300.

The terminal authentication processor 218 is configured to authenticatethe communications terminal 200 to the certificate server 300 and/or toa computer server, distinct from the certificate server 300, using thesaved terminal authentication certificate. In the embodiment describedbelow, the terminal authentication processor 218 uses the terminalauthentication certificate to authenticate to the network gateway 400,and may also use the terminal authentication certificate to authenticateto certificate server 300 in order to renew the terminal authenticationcertificate. However, it should be understood that the terminalauthentication certificate may be used to authenticate thecommunications terminal 200 to any network device that is accessible,directly or indirectly, to the communications terminal 200.

The transaction processor 220 is configured to generate a transactionproposal from one or more of the administrator credentials (e.g. sysID,administrator passcode), and to transmit the transaction proposal to thenetwork gateway 400, via the first network interface 206 a. Thetransaction proposal identifies a proposed transaction that the operatorof the communications terminal 200 proposes to engage in with a networkdevice 500 of the second communications network 104. Accordingly, thetransaction proposal may also include payment particulars for theproposed transaction or include one or more predefined transactionidentifiers which the network gateway 400 can use to calculate orotherwise determine the payment particulars.

The transaction processor 220 is configured to receive from the networkgateway 400 a transaction proposal response that is issued in responseto the transaction proposal. The transaction proposal response specifiesa pointer to the proposed transaction. As will be explained below, thenetwork gateway 400 may generate the transaction pointer from theadministrator credentials, payment particulars and/or transactionidentifiers (if any) that were included in the transaction proposal.Alternately, or additionally, the transaction pointer may comprise apseudo-random number generated by the network gateway 400. Thetransaction proposal response may also identify the payment particularsfor the proposed transaction. Preferably, the transaction processor 220saves the transaction proposal response in the memory 214.

The transaction processor 220 may also be configured to transmit overthe payment network 106, via the second network interface 206 b, paymentparticulars for effecting payment for the proposed transaction, and toreceive from the payment network 106 a payment confirmation in responseto the payment particulars. After payment for the proposed transactionis confirmed, the transaction processor 220 generates a transactioncompletion request from the administrator credential and the transactionpointer, and transmits the transaction completion request to the networkclient via the first network interface 206 a and the network gateway400. The transaction completion request requests completion of theproposed transaction with the network device 500.

Certificate Server/Terminal Management Server

The certificate server 300 is implemented as one or more networkedcomputer servers. As shown in FIG. 3, the certificate server 300includes a primary network interface 302, a secondary network interface304, and a computer processing unit 306 that is coupled to the primarynetwork interface 302 and the secondary network interface 304. Theprimary network interface 302 interfaces the certificate server 300 withthe first communications network 102 and allows the certificate server300 to communicate with the communications terminals 200. The secondarynetwork interface 304 interfaces the certificate server 300 with theterminal management server 350.

The computer processing unit 306 of the certificate server 300 mayinclude a microprocessor 308 and a computer-readable medium 310. Thecomputer-readable medium 310 may be provided as electronic computermemory (e.g. flash memory) or optical or magnetic memory (e.g. compactdisc, hard disk) and may include computer processing instructions storedthereon which, when executed by the microprocessor 308, define anoperating system (not shown) that controls the overall operation of thecertificate server 300.

The computer processing instructions may also implement a certificategenerator 314 that generates the terminal authentication certificateswhich allow the communications terminals 200 to authenticate to thenetwork gateway 400. The certificate generator 314 also allows thecommunications terminals 200 to renew their respective terminalauthentication certificates. Although the certificate generator 314 maybe implemented as computer processing instructions, all or a portion ofthe functionality of the certificate generator 314 may be implementedinstead in electronics hardware.

The certificate generator 314 is configured to receive a terminalactivation request from a communications terminal 200, and to determinea validity of the terminal activation request. The terminal activationrequest includes a digital signature and a public encryption key. Thecertificate generator 314 determines the validity of the terminalactivation request by verifying that the digital signature was generatedfrom a private encryption key that is uniquely associated with thecommunications terminal 200, and that the public encryption key and theprivate encryption key comprise an asymmetric encryption key pair.

As discussed above, the terminal management server 350 may include adatabase of records, each associated with a respective communicationsterminal 200. Each database record may identify the terminal credentials(e.g. terminal ID, terminal serial number) that are uniquely associatedwith the communications terminal 200. The terminal activation requestmay include the terminal credentials of the communications terminal 200.The certificate generator 314 may determine the validity of the terminalactivation request by, before (or after) verifying the digital signatureon the terminal activation request, using the terminal management server350 to verify that the terminal credentials included in the terminalactivation request are associated with a common communications terminal200.

The certificate generator 314 is configured to, in accordance with theterminal activation request validity determination, generate anactivation response in response to the terminal activation request andtransmit the activation response to the communications terminal 200. Theactivation response comprises a digital authentication certificate thatincludes the public encryption key and facilitates authentication of thecommunications terminal 200 to a computer server, distinct from thecertificate server 300.

The certificate generator 314 may also be configured to receive from thecommunications terminal 200 a certificate renewal request requestingrenewal of the digital authentication certificate, and to determine avalidity of the certificate renewal request. The certificate renewalrequest may include the public encryption key and a further digitalsignature. The certificate generator 314 may determine the validity ofthe certificate renewal request by verifying that the digital signatureof the certificate renewal request was generated from the privateencryption key that is uniquely associated with the payment terminal andthat the public encryption key and the private encryption key comprisean asymmetric encryption key pair.

The certificate generator 314 may be configured to, in accordance withthe certificate renewal request validity determination, generate arenewal response in response to the certificate renewal request andtransmit the renewal response to the communications terminal 200. Therenewal response may include a renewed digital authenticationcertificate that includes the public encryption key and facilitatesauthentication of the payment terminal to the computer server. Thecertificate generator 314 may use the digital authentication certificate(that was included in the activation response) to establish an encryptedconnection with the communications terminal 200, and may receive thecertificate renewal request from, and transmit the renewal response to,the communications terminal 200 over the encrypted connection.

Network Gateway

The network gateway 400 is implemented as one or more networked computerservers. As shown in FIG. 4, the network gateway 400 includes a primarynetwork interface 402, a secondary network interface 404, and a computerprocessing unit 406 that is coupled to the primary network interface 402and the secondary network interface 404. The primary network interface402 interfaces the network gateway 400 with the first communicationsnetwork 102 and allows the network gateway 400 to communicate with thecommunications terminals 200. The secondary network interface 404interfaces the network gateway 400 with the second communicationsnetwork 104 and allows the network gateway 400 to communicate withnetwork devices 500 of the second communications network 104.

The computer processing unit 406 may include a microprocessor 408 and acomputer-readable medium 410. The computer-readable medium 410 may beprovided as electronic computer memory (e.g. flash memory) or optical ormagnetic memory (e.g. compact disc, hard disk) and may include computerprocessing instructions stored thereon which, when executed by themicroprocessor 408, define an operating system (not shown) that controlsthe overall operation of the network gateway 400.

The computer processing instructions may also implement a gatewayauthenticator 414 that is configured to receive an authenticationrequest from a communications terminal 200, and to transmit theauthentication request to a communications network. The authenticationrequest typically includes a token cryptogram that is generated from acryptographic key that is stored on an identity token 210 that isinterfaced with the communications terminal 200.

The gateway authenticator 414 is also configured to receive anauthentication response from the communications network in accordancewith a validity of the token cryptogram. The authentication responseincludes a gateway authentication certificate which the network gateway400 uses to authenticate to a network device of the communicationsnetwork.

In the embodiment described below, the network gateway 400 transmits theauthentication request to, and receives the authentication response fromthe second communications network 104, and uses the gatewayauthentication certificate to authenticate to a network device 500 ofthe second communications network 104. However, this configuration isnot essential; the network gateway 400 may transmit the authenticationrequest to any network device that can issue a gateway authenticationcertificate which the network gateway 400 may require to access aparticular network.

Terminal Authentication Processing—Overview

As discussed, the communications terminal 200 implements a method ofauthenticating the communications terminals 200. A sample embodiment ofthe communications terminal authenticating method is depicted in FIG. 5.In this embodiment, preferably the communications terminal 200 isimplemented as a payment terminal.

At the outset of the method, the payment terminal 200 generates aterminal activation request from a private encryption key (activationcode) that is input into or saved in the communications terminal 200,and from at least one terminal credential that is uniquely associatedwith the payment terminal 200. The terminal activation request includesa public encryption key. Preferably, the public encryption key and theprivate encryption key comprise an asymmetric encryption key pair. Thepayment terminal 200 transmits the terminal activation request to thecertificate server 300, at step S500.

At step S502, the payment terminal 200 receives an activation responsefrom the certificate server 300 in response to the terminal activationrequest. The activation response comprises a digital authenticationcertificate that includes the public encryption key that was includedwith the terminal activation request.

Preferably, the certificate server 300 signs the digital authenticationcertificate using the certificate server's private encryption key. Thecertificate server 300 may determine the validity of the terminalcredential, and may generate the digital authentication certificateafter successfully validating the terminal credential. Alternately, thecertificate server 300 may forward the activation request to acertificate signing authority for generation of the digitalauthentication certificate (preferably after the certificate server 300validates the terminal credential), or may generate the digitalauthentication certificate after forwarding the activation request toanother network device for credential validation.

At step S504, the payment terminal 200 uses the digital authenticationcertificate to authenticate to a network device that is distinct fromthe certificate server 300. As discussed above, typically the paymentterminal 200 uses the digital authentication certificate to authenticateto the network gateway 400. However, the digital authenticationcertificate may be used to authenticate to any network device that isaccessible, directly or indirectly, to the payment terminal 200. Sinceconventional payment terminal authentication techniques only use theterminal serial number to authenticate the payment terminal, thissolution offers a significant advantage over the state of the art.

Gateway Authentication Processing—Overview

As discussed, the network gateway 400 implements a method of networkgateway authenticating. A sample embodiment of the network gatewayauthenticating method is depicted in FIG. 6.

As shown therein, at step S600 the network gateway 400 receives anauthentication request from a communications terminal 200. In thisembodiment, the communications terminal 200 comprises a wireless orwired communications device, which could be, but is not necessarily,implemented as a payment terminal. The authentication request includes atoken cryptogram that is generated from a cryptographic key that isstored on an identity token 210 that is interfaced with thecommunications terminal 200. Optionally, the authentication request mayinclude one or more of the administrator credentials.

At step S602, the network gateway 400 transmits the authenticationrequest to a communications network. At step S604, the network gateway400 receives an authentication response from the communications networkin accordance with a validity of the token cryptogram, and saves theauthentication response. The authentication response includes a gatewayauthentication certificate which the network gateway 400 uses toauthenticate to a network device of the communications network.

A network device of the communications network may determine thevalidity of the token cryptogram (for example, by verifying that thetoken cryptogram was generated from a cryptographic key stored on theidentity token 210), and the authentication response may be transmittedto the network gateway 400 in accordance with the determined validity.

Where the authentication request includes an administrator credential,optionally the network gateway 400 may associate the administratorcredential with the gateway authentication certificate. Thereafter, ifthe network gateway 400 receives an administrator credential from thecommunications terminal 200, the network gateway 400 may use thereceived administrator credential and the associated gatewayauthentication certificate to authenticate to the network device of thecommunications network.

For example, as discussed above with reference to step S506, thecommunications terminal 200 may receive a terminal authenticationcertificate that is configured to facilitate authentication of thecommunications terminal 200 to the network gateway 400. After step S604,the operator of the communications terminal 200 may transmit avalidation request to the network gateway 400 requesting authenticationof the communications terminal 200 to a network device of thecommunications network (e.g. the network device 500 of the secondcommunications network 104). The network gateway 400 may facilitateauthentication of the communications terminal 200 to the network deviceof the communications network via the gateway authentication certificateand the validation request.

As a more detailed example, the validation request may include anadministrator credential, and the communications terminal 200 maytransmit the validation request to the network gateway 400 after usingthe terminal authentication certificate to authenticate to the networkgateway 400. The network gateway 400 may use the validation request tolocate the gateway authentication certificate that is associated withthe administrator credential, and then use the located gatewayauthentication certificate to authenticate to the network device of thecommunications network.

Transaction Processing—Overview

As discussed, the network gateway 400 also implements a method forcompleting a transaction with a network device. A sample embodiment ofthe transaction completion method is depicted in FIG. 7.

As shown therein, at step S700 the communications terminal 200 transmitsa transaction proposal to the network gateway 400 via the firstcommunications network 102. In this embodiment, the communicationsterminal 200 comprises a wireless or wired communications device, whichcould be, but is not necessarily, implemented as a payment terminal. Thetransaction proposal identifies a transaction that the operator of thecommunications terminal 200 proposes to engage in with a network device.

The network gateway 400 is configured to authenticate to the networkdevice via a communications network that comprises the network device.For example, as discussed above, at step S604 the network gateway 400may receive a gateway authentication certificate which the networkgateway 400 can use to authenticate to a network device of thecommunications network. Accordingly, the transaction proposal mayidentify a proposed transaction with the network device 500 of thesecond communications network 104.

At step S702, the communications terminal 200 receives from the networkgateway 400 a transaction proposal response in response to thetransaction proposal. The transaction proposal response specifies apointer to the proposed transaction. Preferably, the transactionproposal response also identifies the payment particulars for theproposed transaction.

At step S704, the communications terminal 200 may transmit over thepayment network 106 payment particulars for effecting payment for theproposed transaction. At step S706, the communications terminal 200 mayreceive from the payment network 106 a payment confirmation in responseto the payment particulars. However, these latter two steps are notessential; the operator of the communications terminal 200 may effectpayment for the proposed transaction without engaging the paymentnetwork 106. For example, the operator may pay cash for the proposedtransaction, or may use a payment terminal other than the communicationsterminal 200 to effect payment for the proposed transaction.

After payment is provided for the proposed transaction, at step S708 thecommunications terminal 200 initiates completion of the proposedtransaction by generating a transaction completion request andtransmitting the transaction completion request to the network devicevia the network gateway 400. The communications terminal 200 generatesthe transaction completion request from the transaction pointer that wasreceived at step S702. By virtue of the transaction completion request,the communications terminal 200 requests completion of the proposedtransaction with the network device.

To complete the transaction, the network gateway 400 may generate atransaction request message from the transaction completion request, andtransmit the transaction request message to the network device via thesecond communications network 104, at step S710. The transaction requestmessage may include the administrator credential and identify theparticulars of the proposed transaction.

Online Transaction Processing Method—Detailed Discussion

A preferred implementation of the authentication network 100 will now bediscussed with reference to FIGS. 8 to 12. In this implementation, thesecond communications network 104 comprises a wide area network, such asthe Internet, and the network device 500 is implemented as computer(lottery) server that facilitates online lottery ticket sales via thesecond communications network 104. Each communications terminal 200 isconfigured as a payment terminal that is connected to a respectiveelectronic cash register (ECR) and is deployed in a respective checkoutlane of the merchant's store. The secure payment network 106 comprisesthe merchants' respective acquirer networks, and customers in themerchants' stores use the communications terminals 200 to purchaselottery tickets from the lottery server 500. Although in the followingexample method, the communications terminals 200 are used to purchaselottery tickets, it should be understood that the method could be usedto complete online transactions other than lottery ticket sales,including the purchase of goods/services, bill payment, funds transfer,and/or bank account or credit card balance query. Further, although inthe following example method, the communications terminals 200 areimplemented as payment terminals, it should be understood that thecommunications terminals 200 could be implemented as communicationsdevices other than a payment terminals.

The operator of the lottery provides each merchant with a smartcard 210that is configured with the unique administrator credentials (sysID andadministrator passcode). The lottery server 500 is in communication witha token database that saves the administrator credentials and publiccryptographic key associated with each smartcard 210.

The administrator of the terminal management server 350 provides eachmerchant with a physical document that specifies the terminalcredentials (unique terminal ID and terminal serial number) andactivation code for each of the merchant's payment terminals 200. Thedatabase of the terminal management server 350 stores the terminalcredentials of each payment terminal 200. The memory 214 of each paymentterminal 200 is pre-configured with a terminal serial number and withthe authentication certificate of the certificate server 300.

1. Terminal Activation

To allow the merchant to use the payment terminals 200 within theauthentication network 100, the merchant executes the terminalactivation method, depicted in FIG. 8, to thereby provide each paymentterminal 200 with a respective terminal authentication certificate thatthe payment terminal 200 can use to authenticate to the network gateway400.

At step S800, the merchant applies power to the payment terminal 200 (byconnecting the payment terminal 200 to the associated electronic cashregister, for example), and the payment terminal 200 establishes anencrypted channel with the certificate server 300. Typically, thepayment terminal 200 uses the authentication certificate of thecertificate server 300 to establish a server-side SSL connection withthe certificate server 300.

The merchant may use the data input device 202 to select the terminalactivation method from a menu of available methods. The terminalauthentication processor 218 of the payment terminal 200 then promptsthe merchant to input the terminal credentials (terminal ID, terminalserial number) and activation code (private cryptographic key) into thepayment terminal 200. The merchant manually inputs the required terminalcredentials into the payment terminal 200 via the data input device 202.

In response, the terminal authentication processor 218 generates aterminal activation request message from the terminal credentials andthe activation code. The terminal activation request message includes apublic cryptographic key which the terminal authentication processor 218generates from the activation code. The public cryptographic key and theactivation code comprise an asymmetric encryption key pair.

Preferably, the terminal activation request comprises a certificatesigning request (CSR) that the terminal authentication processor 218generates from the terminal credentials. More preferably, thecertificate signing request includes the terminal ID and the publiccryptographic key and is digitally-signed using the activation code. Theterminal activation request may also include an encrypted messageauthentication code (e.g. HMAC) that is generated from the terminalserial number and the certificate signing request.

At step S802, the payment terminal 200 transmits the terminal activationrequest to the certificate server 300. The certificate server 300 thendetermines the validity of the terminal activation request. To do so, atstep S804 the certificate generator 314 may transmit the terminalactivation request to the terminal management server 350, requestingthat the terminal management server 350 validate the terminalcredentials included in the terminal activation request. In response,the terminal management server 350 may query its database with theterminal credentials to verify that the terminal credentials areassociated with a common payment terminal 200 (i.e. the terminalcredentials are associated with a legitimate payment terminal 200). Theterminal management server 350 may respond to the certificate server 300with a validation response, at step S806.

The certificate server 300 may also determine the validity of theterminal activation request by verifying the digital signature on theterminal activation request. To do so, the certificate generator 314uses the public cryptographic key that was included with the certificatesigning request to verify that the certificate signing request wassigned using the activation code (and, therefore, verify that the publiccryptographic key was generated from the activation code, and theactivation code and public cryptographic key comprise an asymmetricencryption key pair).

If the certificate server 300 determines that the terminal activationrequest is valid, the certificate generator 314 generates an activationresponse message that includes a terminal authentication certificatethat the payment terminal 200 can use to authenticate to the networkgateway 400. The certificate generator 314 generates the terminalauthentication certificate from the public cryptographic key of thecertificate signing request, and signs the terminal authenticationcertificate with the private encryption key assigned to the certificateserver 300. Preferably, the terminal authentication certificate is aX.509 digital certificate and, therefore, specifies an expiry date thatis a predetermined number of days after the current date. Thecertificate generator 314 may insert, into the activation responsemessage, the (renewal) network address (e.g. IP address and/or portnumber) of the certificate server 300 at which the payment terminal 200can transmit certificate renewal requests. Otherwise, the certificateserver 300 generates an activation response message that indicates thatthe terminal activation request is invalid.

The certificate server 300 transmits the activation response message tothe payment terminal 200, in response to the activation request message,at step S808. In response, the terminal authentication processor 218 mayverify that the terminal authentication certificate was digitally-signedby the certificate server 300, and then saves the terminalauthentication certificate in the memory 214, together with the terminalID, the activation code, and the renewal network address. Thereafter,the payment terminal 200 may use the terminal authentication certificateto authenticate to the network gateway 400.

2. Terminal Certificate Renewal

Preferably, the payment terminals 200 authenticate to the networkgateway 400 whenever customers attempt to use the payment terminals 200to purchase lottery tickets from the lottery server 500. Preferably, thepayment terminals 200 also authenticate to the network gateway 400 inorder to set up the network gateway 400 and, optionally, to register thepayment terminals 200 with the lottery server 500. Therefore, preferablythe payment terminal 200 periodically executes the certificate renewalmethod, depicted in FIG. 9, to ensure that the terminal authenticationcertificate remains valid. As will become apparent, the payment terminal200 may use the digital authentication certificate to establish anencrypted connection with the certificate server 300 and/or the networkgateway 400 based on the validity of the terminal authenticationcertificate. Unlike the terminal activation method, the gateway setupmethod, the terminal registration method and the transaction requestmethod described herein, preferably the payment terminals 200 executesthe certificate renewal method automatically (i.e. without being invokedby the merchant) and transparently (i.e. without notification to themerchant).

At the outset of the certificate renewal method, the terminalauthentication processor 218 determines the expiry date of the terminalauthentication certificate. If the expiry date reveals that the terminalauthentication certificate has expired, the certificate renewal methodterminates and the payment terminal 200 will thereafter not re-attemptto authenticate to or otherwise communicate with the network gateway400, at least until the merchant re-executes the terminal activationmethod with a new activation code.

However, if the expiry date indicates that the terminal authenticationcertificate has not expired, and the expiry date of the terminalauthentication certificate falls within a predetermined time frame afterthe current date, at step S900 the terminal authentication processor 218establishes an encrypted communications channel with the certificateserver 300 at the renewal network address (e.g. IP address and/or portnumber) specified in the activation response message. Typically, theterminal authentication processor 218 uses the terminal authenticationcertificate to establish a mutually-authenticated SSL connection withthe certificate server 300. The certificate server 300 may refuse theconnection if the terminal authentication certificate has expired.

The terminal authentication processor 218 then generates a certificaterenewal request message from the terminal credentials and the activationcode. Preferably, the certificate renewal request message includes thepublic cryptographic key and the terminal credentials. More preferably,the certificate renewal request comprises a certificate signing request(CSR) that includes the terminal ID and the public cryptographic key andis digitally-signed using the activation code that was saved in thememory 214.

At step S902, the payment terminal 200 transmits the certificate renewalrequest to the certificate server 300 over the encrypted channel. Thecertificate server 300 then determines the validity of the certificaterenewal request. To do so, at step S904, the certificate generator 314may transmit the certificate renewal request to the terminal managementserver 350, requesting that the terminal management server 350 tovalidate the terminal credentials included in the certificate renewalrequest. In response, the terminal management server 350 may query itsdatabase with the terminal credentials to verify that the terminalcredentials are associated with a common payment terminal 200 (i.e. theterminal credentials are associated with a legitimate payment terminal200).

As will be discussed below, suspicious or fraudulent activity involvingthe payment terminal 200 may have been reported to the operator of theterminal management server 350. Accordingly, the terminal managementserver 350 may also query its database with the terminal credentials toverify that the terminal authentication certificate has not beenrevoked.

If the terminal management server 350 determines that the terminalcredentials are associated with a legitimate payment terminal 200, andthat the terminal authentication certificate has not been revoked, theterminal management server 350 responds to the certificate server 300with a validation response, at step S906, indicating that the terminalcredentials were successfully validated. Otherwise, the terminalmanagement server 350 responds to the certificate server 300 with avalidation response indicating that validation of the terminalcredentials failed.

The certificate server 300 may also determine the validity of thecertificate renewal request by verifying the digital signature on thecertificate renewal request. To do so, the certificate generator 314uses the public cryptographic key that was included with the certificatesigning request to verify that the certificate signing request wassigned using the activation code (and, therefore, verify that the publiccryptographic key was generated from the activation code, and theactivation code and public cryptographic key comprise an asymmetricencryption key pair).

If the certificate server 300 determines that the certificate renewalrequest (and the terminal credentials included therein) are valid, thecertificate generator 314 generates a certificate renewal responsemessage that includes a renewed terminal authentication certificate. Thecertificate generator 314 generates the renewed terminal authenticationcertificate from the public cryptographic key of the certificate signingrequest, and signs the terminal authentication certificate with theprivate encryption key assigned to the certificate server 300.Preferably, the renewed terminal authentication certificate is a X.509digital certificate and, therefore, specifies an expiry date that is apredetermined number of days after the current date. Otherwise, thecertificate server 300 generates a certificate renewal response messagethat indicates that the certificate renewal request is invalid.

The certificate server 300 transmits the certificate renewal responsemessage to the payment terminal 200, in response to the certificaterenewal request, at step S908. In response, the terminal authenticationprocessor 218 verifies that the renewed terminal authenticationcertificate was signed by the certificate server 300, and then replacesthe terminal authentication certificate in the memory 214 with therenewed terminal authentication certificate. Thereafter, the paymentterminal 200 uses the renewed terminal authentication certificate toauthenticate to the network gateway 400. Since the payment terminal 200preferably verifies that the (renewed) terminal authenticationcertificate was signed by the certificate server 300 upon receipt ofsame from the certificate server 300, and periodically determines theexpiry date of the (renewed) terminal authentication certificate priorto transmitting a certificate renewal request to the certificate server300, in effect the payment terminal 200 renews the terminalauthentication certificate in accordance with the outcome of the digitalsignature verification and the expiry date verification.

3. Gateway Setup

After activating the payment terminal 200, the merchant executes thegateway setup method, depicted in FIG. 10, to thereby provide thenetwork gateway 400 with a gateway authentication certificate that thenetwork gateway 400 can use to authenticate to the lottery server 500 ofthe second communications network 104. Optionally, the gateway setupmethod also installs in the network gateway 400 a gateway credentialwhich the payment terminal 200 can use to allow the merchant to accessand configure the network gateway 400.

The merchant may use the data input device 202 to select the gatewaysetup method from the menu of available methods. If the terminalauthentication processor 218 determines that the terminal authenticationcertificate is valid, the terminal authentication processor 218establishes an encrypted channel with the network gateway 400, at stepS1000. Typically, the terminal authentication processor 218 uses theterminal authentication certificate to establish amutually-authenticated SSL connection with the network gateway 400. Thenetwork gateway 400 may refuse the connection if the terminalauthentication certificate has expired.

The terminal authentication processor 218 of the payment terminal 200then prompts the merchant to interface an identity token with thepayment terminal 200 and to input one or more administrator credentials(e.g. sysID, administrator passcode) into the payment terminal 200. Themerchant interfaces the supplied smartcard 210 with the token interface209 of the payment terminal 200, and then uses the data input device 202to input the required administrator credentials into the paymentterminal 200. In response, the terminal authentication processor 218generates a credential validation request message that includes theadministrator credential(s). The terminal authentication processor 218transmits the credential validation request to the smartcard 210, atstep S1002.

In response, the smartcard 210 may compare the administrator credentialsthat were received in the credential validation request with theadministrator credentials that are saved in the protected memory of thesmartcard 210. If the received administrator credentials match the savedadministrator credentials, the smartcard 210 may generate a tokencryptogram from the administrator credentials and the privatecryptographic key saved in the smartcard 210. Alternately, the smartcard210 may generate the token cryptogram without comparing theadministrator credentials with the saved administrator credentials.

The smartcard 210 then generates a credential validation response thatincludes the token cryptogram. Otherwise, the smartcard 210 may generatea credential validation response that indicates that the receivedadministrator credentials are invalid. The smartcard 210 transmits thecredential validation response to the payment terminal 200, in responseto the credential validation request, at step S1004.

If the credential validation response includes a token cryptogram, theterminal authentication processor 218 generates a card authenticationrequest message that includes the administrator credentials and thetoken cryptogram. The terminal authentication processor 218 thentransmits the card authentication request to the network gateway 400over the encrypted channel, at step S1006. Preferably, the smartcard 210generates the token cryptogram from the administrator sysID and thetoken private cryptographic key and, therefore, the card authenticationrequest includes the administrator sysID and the token cryptogram.

The gateway authenticator 414 of the network gateway 400 generates acertificate request message that includes the token cryptogram andassociated administrator credential(s), and transmits the certificaterequest message to a network device (lottery server) 500 of the secondcommunications network, at step S1008. In response, the lottery serveruses the administrator credential(s) of the certificate request messageto locate the public cryptographic key that is associated with thesmartcard 210. The lottery server then validates the token cryptogram ofthe certificate request message using the located public cryptographickey, thereby verifying that the token cryptogram was generated from theadministrator credentials and from the private cryptographic key that isassociated with the smartcard 210.

If the lottery server determines that the token cryptogram is valid, thelottery server generates a certificate response message that includes agateway authentication certificate that the network gateway 400 can useto authenticate to the lottery server. The lottery server signs thegateway authentication certificate with the private encryption keyassigned to the lottery server, and may also associate the gatewayauthentication certificate with the administrator credential(s) thatwere included with the certificate request message. Otherwise, thelottery server generates a certificate response message that indicatesthat the token cryptogram is invalid. The lottery server transmits thecertificate response message to the network gateway 400, in response tothe certificate request message, at step S1010.

The gateway authenticator 414 may verify that the gateway authenticationcertificate was digitally-signed by the lottery server, and then savesthe gateway authentication certificate, together with the administratorcredentials that were included in the card validation request.Preferably, the gateway authenticator 414 associates the gatewayauthentication certificate with the administrator sysID. Thereafter, thenetwork gateway 400 can use the gateway authentication certificate toauthenticate to the lottery server.

The gateway authenticator 414 then generates a card authenticationresponse, indicative of the validity of the token cryptogram. Thegateway authenticator 414 transmits the card validation response to thepayment terminal 200, in response to the card authentication request, atstep S1012.

Optionally, the terminal authentication processor 218 of the paymentterminal 200 may then prompt the merchant to input into the paymentterminal 200 a new credential (e.g. a gateway passcode) which themerchant would like to use to access and configure the network gateway400. The merchant uses the data input device 202 to input the newcredential (gateway passcode) into the payment terminal 200. Inresponse, the terminal authentication processor 218 computes a hash codefrom the gateway passcode, and generates a security setup requestmessage that includes the administrator sysID and hashed gatewaypasscode. The terminal authentication processor 218 transmits thesecurity setup request to the network gateway 400, at step S1014.

The gateway authenticator 414 validates the security setup request byverifying that the network gateway 400 has already associated theadministrator sysID (included in the security setup request message)with a gateway authentication certificate. If the gateway authenticator414 is able to locate a corresponding gateway authenticationcertificate, the gateway authenticator 414 associates the hashed gatewaypasscode with the saved administrator sysID and the associated gatewayauthentication certificate, and generates a security setup responsemessage, indicative of the validity of the administrator sysID.Otherwise, the gateway authenticator 414 generates a security setupresponse message that indicates that the security setup request failed.

The gateway authenticator 414 transmits the security setup responsemessage to the payment terminal 200, in response to the security setuprequest, at step S1016. If the security setup request was successfullyvalidated, the merchant may thereafter use the administrator sysID andassociated gateway passcode to access and configure the network gateway400, as will be explained in the next section.

4. Terminal Validation—Optional

The merchant may optionally execute the terminal validation method,depicted in FIG. 11, which registers the payment terminals 200 with thelottery server. Registering the payment terminals 200 allows the lotteryserver to subsequently verify the validity of the payment terminal 200.

The merchant may use the data input device 202 to select the terminalvalidation method from the menu of available methods. If the terminalauthentication processor 218 determines that the terminal authenticationcertificate is valid, the terminal authentication processor 218establishes an encrypted channel with the network gateway 400, at stepS1100. Typically, the terminal authentication processor 218 uses theterminal authentication certificate to establish amutually-authenticated SSL connection with the network gateway 400. Thenetwork gateway 400 may refuse the connection if the terminalauthentication certificate has expired.

The terminal authentication processor 218 of the payment terminal 200then prompts the merchant to an input one or more credentials (e.g.administrator sysID and gateway passcode) into the payment terminal 200.The merchant uses the data input device 202 to input the requestedcredentials into the payment terminal 200. In response, the terminalauthentication processor 218 computes a hash code from the gatewaypasscode, and generates an administrator authentication request messagethat includes the administrator sysID and hashed gateway passcode. Theterminal authentication processor 218 transmits the administratorauthentication request to the network gateway 400 over the encryptedchannel, at step S1102.

The gateway authenticator 414 validates the administrator authenticationrequest by verifying that the network gateway 400 has already associatedthe administrator sysID and hashed gateway passcode with a gatewayauthentication certificate. If the gateway authenticator 414 is able tolocate a corresponding gateway authentication certificate, the gatewayauthenticator 414 generates an administrator authentication responsemessage, indicative of the validity of the credentials. Otherwise, thegateway authenticator 414 generates an administrator authenticationresponse message that indicates that the administrator authenticationrequest failed.

If the administrator authentication request was successfully validated,the terminal authentication processor 218 prompts the merchant to inputinto the payment terminal 200 a “local terminal credential” which themerchant would like to use to identify this particular payment terminal200. As used herein, a “local terminal credential” is a terminalcredential that a merchant may use to uniquely identify one of themerchant's payment terminals but which, in contrast to other terminalcredentials (e.g. terminal serial numbers), are not necessarily uniqueamongst all merchants of the network gateway 400.

As discussed above, each payment terminal 200 may be deployed in arespective checkout lane of the merchant's store. Accordingly, themerchant may use the data input device 202 to input the lane number(local terminal credential) into the payment terminal 200. In response,the terminal authentication processor 218 generates a terminalvalidation request message that includes the administrator sysID andlane number. The terminal authentication processor 218 transmits theterminal validation request to the network gateway 400 over theencrypted channel, at step S1104.

The gateway authenticator 414 uses the administrator sysID (included inthe terminal validation request message) to locate the correspondinggateway authentication certificate. If the gateway authenticator 414 isable to locate the corresponding gateway authentication certificate, thegateway authenticator 414 uses the located gateway authenticationcertificate to establish an encrypted communications channel with thelottery server via the second communications network 104, at step S1108.Typically, the gateway authenticator 414 uses the located gatewayauthentication certificate to establish a mutually-authenticated SSLconnection with the lottery server. Otherwise, the gateway authenticator414 generates a terminal validation response message that indicates thatthe terminal validation request failed.

If the gateway authenticator 414 is able to validate the terminalvalidation request, at step S1110 the gateway authenticator 414transmits the terminal validation request to the lottery server over theencrypted channel that is established between the network gateway 400and the lottery server. The lottery server may validate the terminalvalidation request by verifying that the lottery server has alreadyassociated the administrator sysID with the gateway authenticationcertificate (e.g. after step S1008 of the gateway setup method).

If the lottery server is able to validate the terminal validationrequest, the lottery server associates the administrator sysID with thespecified lane number, and then generates a terminal validation responsemessage, confirming successful validation of the terminal validationrequest. Otherwise, the lottery server generates a terminal validationresponse message that indicates that the a terminal validation requestfailed. The lottery server transmits the terminal validation responsemessage to the network gateway 400, at step S1112.

If the terminal validation request is successful, the gatewayauthenticator 414 associates the administrator sysID with the specifiedlane number. The gateway authenticator 414 then transmits the terminalvalidation response message to the payment terminal 200, in response tothe terminal validation request, at step S1114. If the terminalvalidation request was successfully validated, the payment terminal 200saves the specified lane number in the memory 214, together with theadministrator sysID.

The merchant typically executes the terminal validation method on eachof the merchant's payment terminals 200. Each payment terminal 200 maythereafter use the administrator sysID and the payment terminal's localterminal credential to identify itself to the lottery server. As will bedemonstrated in the next section, the administrator sysID and associatedlocal terminal credential allow the lottery server to confirm thevalidity of the payment terminal 200.

5. Transaction Proposal Processing

After the merchant has activated the payment terminals 200 and set upthe network gateway 400 (and optionally validated the payment terminals200 to the lottery server), the merchant's customer may execute thetransaction processing method, depicted in FIG. 12, to complete anonline transaction with a network device (lottery server) 500 of thesecond communications network 104.

At step S1200, an operator of the electronic cash register transmits asign-on request message from the electronic cash register to theassociated payment terminal 200. If the terminal authenticationprocessor 218 determines that the terminal authentication certificate isvalid, the terminal authentication processor 218 establishes anencrypted channel with the network gateway 400, at step S1202.Typically, the terminal authentication processor 218 uses the terminalauthentication certificate to establish a mutually-authenticated SSLconnection with the network gateway 400. The network gateway 400 mayrefuse the connection if the terminal authentication certificate hasexpired.

The transaction processor 220 then generates a sign-on authenticationrequest message that includes one or more the administrator credentialswhich the transaction processor 220 reads from the memory 214 of thepayment terminal 200. Preferably, the sign-on authentication requestmessage includes the administrator sysID and the local terminalcredential of the payment terminal 200 (if assigned). The transactionprocessor 220 transmits the sign-on authentication request message tothe network gateway 400 over the encrypted channel, at step S1204.

The gateway authenticator 414 validates the sign-on authenticationrequest by verifying that the network gateway 400 has associated thespecified local terminal credential with the specified administratorsysID. The gateway authenticator 414 then generates a sign-onauthentication response message, indicative of the validity of thecredentials. The gateway authenticator 414 transmits the sign-onauthentication response message to the payment terminal 200, in responseto the sign-on authentication request, at step S1204.

The network gateway 400 may periodically receive summary lotteryinformation from the lottery server (in response to “ping” messagestransmitted by the network gateway 400, for example). The summarylottery information typically includes a list of the various lotterygames that are available and, for each available lottery game, thedeadline for purchasing lottery tickets and the current jackpot. If thecredentials included with the sign-on authentication request are valid,preferably the sign-on authentication response message indicates thatthe sign-on authentication request was successful, and the gatewayauthenticator 414 downloads the most recent summary lottery informationto the payment terminal 200. Otherwise, the sign-on authenticationresponse message indicates that the sign-on authentication requestfailed.

If the sign-on authentication response is successful, the transactionprocessor 220 prompts the customer to select one of the availablelottery games and the corresponding wager amount. The customer may usethe data input device 202 to select the desired lottery game from thelist of available lottery games, and to input the desired wager amount.

The customer proposes a transaction with the lottery server by enteringthe requested information into the payment terminal 200. From one ormore administrator credentials and/or one or more terminal credentials,the transaction processor 220 generates a transaction proposal messagethat specifies the particulars of the proposed transaction. Thetransaction proposal message identifies the selected lottery game andwager amount, and preferably also includes one or more administratorcredentials and/or one or more terminal credentials which thetransaction processor 220 reads from the memory 214 of the paymentterminal 200. Preferably, the transaction proposal message includes theadministrator sysID, terminal ID, terminal serial number, and lanenumber. The transaction processor 220 transmits the transaction proposalrequest to the network gateway 400 over the encrypted connection, atstep S1208.

In a previous online transaction, the operator of the lottery server mayhave detected suspicious or fraudulent activity involving the paymentterminal 200, and may have reported said activity to the operator of theterminal management server 350. In response, the operator of theterminal management server 350 may have updated the database of theterminal management server 350 to indicate that the terminalauthentication certificate assigned to the payment terminal 200 isrevoked. Accordingly, while not shown in FIG. 12, after receiving thetransaction proposal request the gateway authenticator 414 may transmitto the terminal management server 350 a certificate status requestmessage that includes the terminal ID and/or terminal serial number andrequests that the terminal management server 350 determine whether theterminal authentication certificate that is associated with thespecified terminal credentials has been revoked. The terminal managementserver 350 may respond to the network gateway 400 with a certificatestatus response message indicating the revocation status of the terminalauthentication certificate.

If the terminal authentication certificate has been revoked, thetransaction processing method terminates. Otherwise, the gatewayauthenticator 414 generates a random transaction pointer, and associatesthe transaction pointer with the transaction proposal message.Preferably, the gateway authenticator 414 generates the transactionpointer from one or more of the selected lottery game, wager amount,administrator sysID, terminal ID, terminal serial number, and lanenumber. Preferably, however, the elements of the transaction proposalmessage cannot be determined from the transaction pointer.

The gateway authenticator 414 then generates a transaction proposalresponse message that includes the transaction pointer and provides anindication of the payment particulars (e.g. payment amount) for theproposed transaction. Preferably, the indication of payment particularscomprises a payment image that is associated with the paymentparticulars. More preferably, the payment image comprises a bar code(e.g. universal product code) which the gateway authenticator 414generates from the selected lottery game and wager amount. The gatewayauthenticator 414 transmits the transaction proposal response message tothe payment terminal 200, in response to the transaction proposal, atstep S1210.

Upon receipt of the transaction proposal response, the transactionprocessor 220 saves the transaction pointer in the memory 214, and mayrender the payment particulars on the display device 204 of the paymentterminal 200. The operator of the electronic cash register may theninput the payment particulars into the electronic cash register, andtransmit the payment particulars from the electronic cash register tothe payment terminal 200, at step S1212. If the payment particularscomprise a payment image (e.g. universal product code), the transactionprocessor 220 may use the printer of the display device 204 to renderthe payment image. The operator of the electronic cash register may thenuse the bar code scanner of the electronic cash register to scan theprinted payment image and thereby input the payment particulars into theelectronic cash register. Alternately, instead of using manual input orscanning of a payment image to input the payment particulars into theelectronic cash register, the transaction processor 220 may transmit thepayment particulars directly to the electronic cash register.

The customer then provides payment for the proposed transaction. Thecustomer may provide cash payment for the proposed transaction, and theoperator of the electronic cash register may use the electronic cashregister to provide the transaction processor 220 with a successfulpayment confirmation message. However, since the customer has used thepayment terminal 200 to generate the transaction proposal, preferablythe transaction processor 220 invokes the payment processor 216, uponreceipt of the payment particulars from the electronic cash register, tothereby allow the customer to provide electronic payment for theproposed transaction via the payment network 106.

To provide electronic payment for the proposed transaction, the customermay interface the customer's payment card with the contact/contactlesstoken interface 209 of the payment terminal 200 to thereby provide thepayment processor 216 with the required payment account information(e.g. credit card number, debit account number). The customer may alsouse the data input device 202 to provide any required customercredentials (e.g. personal identification number). The payment processor216 may transmit the payment particulars and payment account informationover the payment network 106 at step S1214, and provide the transactionprocessor 220 with a successful payment confirmation message, at stepS1216, after receiving confirmation from the payment network 106 thatthe customer successfully provided payment for the proposed transaction.

Upon receiving a successful payment confirmation message, thetransaction processor 220, generates a transaction completion requestmessage that requests completion of the proposed transaction with thelottery server, and includes the transaction pointer. Preferably, thetransaction completion request message also includes one or moreadministrator credentials and/or one or more terminal credentials whichthe transaction processor 220 reads from the memory 214 of the paymentterminal 200. More preferably, the transaction completion requestmessage includes the administrator sysID, terminal ID, terminal serialnumber, and lane number. If the transaction processor 220 does notreceive a successful payment confirmation message from the electroniccash register within a predetermined time period, the transactionprocessor 220 does not generate a transaction completion request messageand instead deletes the transaction pointer from the memory 214 tothereby prevent the customer from completing the proposed transactionwith the lottery server.

The transaction processor 220 transmits the transaction completionrequest to the network gateway 400 over the encrypted channel, at stepS1218. In response, the gateway authenticator 414 uses the administratorsysID (included in the transaction completion request) to locate thecorresponding gateway authentication certificate, and then uses thelocated gateway authentication certificate to establish an encryptedcommunications channel with the lottery server via the secondcommunications network 104, at step S1220. Typically, the gatewayauthenticator 414 uses the gateway authentication certificate toestablish a mutually-authenticated SSL connection with the lotteryserver.

The gateway authenticator 414 also uses the transaction completionrequest to locate the previously-selected lottery game and wager amount,and generates a transaction request message that specifies the selectedlottery game and wager amount. Preferably, the transaction requestmessage also includes one or more administrator credentials and/or oneor more terminal credentials from the transaction completion request.More preferably, the transaction request message includes theadministrator sysID and lane number. At step S1222, the gatewayauthenticator 414 transmits the transaction request message to thelottery server over the encrypted channel that is established betweenthe network gateway 400 and the lottery server.

The lottery server may validate the transaction request message byverifying that the lottery server has already associated theadministrator sysID and lane number with the gateway authenticationcertificate (e.g. after step S1110 of the terminal registration method).If the lottery server is able to validate the transaction requestmessage, preferably the lottery server generates a transaction responsemessage that includes a transaction completion image that providesconfirmation of completion of the proposed transaction. More preferably,the lottery server randomly generates any/all game numbers/indicia thatare required for the selected lottery game, and the transactioncompletion image comprises a lottery ticket image that depicts thegenerated game numbers/indicia. Otherwise, the lottery server generatesa transaction response message that indicates that the transactionrequest could not be validated.

The lottery server downloads the transaction response message to thenetwork gateway 400, in response to the transaction request message, atstep S1224. The gateway authenticator 414 generates a transactioncompletion response message from the transaction response message. Ifthe transaction request was successfully validated, preferably thetransaction completion response message includes the transaction pointerand the transaction completion image. The gateway authenticator 414downloads the transaction completion response message to the paymentterminal 200, in response to the transaction completion request, at stepS1226.

If the transaction completion request was successfully validated, thetransaction processor 220 deletes the transaction pointer from thememory 214, and prints the transaction completion image that wasincluded with the transaction completion response.

The invention claimed is:
 1. A method of completing a transaction with a payment terminal, comprising: the payment terminal transmitting to a network gateway via a first communications network a transaction proposal identifying a proposed transaction with a network device, and receiving from the network gateway a transaction proposal response in response to the transaction proposal, the transaction proposal response specifying a pointer to the proposed transaction, the network gateway being configured to authenticate to the network device via a second communications network comprising the network device; the payment terminal transmitting over a payment network distinct from the communications networks payment particulars for the proposed transaction, and receiving from the payment network a payment confirmation in response to the payment particulars; and in accordance with the payment confirmation, the payment terminal initiating completion of the proposed transaction by generating a transaction completion request and transmitting the transaction completion request to the network device via the network gateway, the transaction completion request including the pointer and requesting completion of the proposed transaction with the network device, wherein the payment terminal generates the transaction proposal from a credential, and generates the transaction completion request from the credential and the transaction pointer.
 2. The method according to claim 1, further comprising the payment terminal using the credential to authenticate to the network gateway and, in accordance with an outcome of the terminal authenticating, the payment terminal receiving from the network gateway a list of transactions available from the network device, and the payment terminal transmitting a transaction proposal comprises the payment terminal selecting the proposed transaction from the list of available transactions.
 3. The method according to claim 2, wherein the list of available transactions comprises available lotteries.
 4. The method according to claim 2, wherein the transaction proposal response provides payment particulars for the proposed transaction.
 5. The method according to claim 4, wherein the transaction proposal response comprises a bar code.
 6. The method according to claim 1, wherein the payment terminal is coupled to an electronic cash register, the transaction proposal response includes a payment image associated with payment particulars for the proposed transaction, and the payment terminal transmitting the payment particulars over the payment network comprises the payment terminal rendering the payment image and receiving the payment particulars from the electronic cash register after input of the rendered payment image into the electronic cash register.
 7. The method according to claim 6, wherein the payment image comprises a universal product code.
 8. The method according to claim 1, further comprising the payment terminal receiving from the network gateway a transaction completion image in response to the transaction completion request, and displaying the transaction completion image, the transaction completion image providing a confirmation of completion of the proposed transaction.
 9. The method according to claim 8, wherein the transaction completion image comprises a lottery ticket.
 10. A payment terminal, comprising: a first network interface configured to interface the payment terminal with a first communications network; a second network interface configured to interface the payment terminal with a payment network distinct from the communications network; and a transaction processor in communication with the network interfaces and being configured to (i) generate a transaction proposal identifying a proposed transaction with a network device, (ii) transmit the transaction proposal to a network gateway via the first network interface, and receive from the network gateway a transaction proposal response in response to the transaction proposal, the transaction proposal response specifying a pointer to the proposed transaction, the network gateway being configured to authenticate to the network device via a second communications network comprising the network device, (iii) transmit over the payment network via the second network interface payment particulars for the proposed transaction, and receive from the payment network a payment confirmation in response to the payment particulars, (iv) in accordance with the payment confirmation, generate a transaction completion request requesting completion of the proposed transaction with the network device, the transaction completion request including the pointer and requesting completion of the proposed transaction with the network device, and (v) transmit the transaction completion request to the network device via the first network interface and the network gateway.
 11. The payment terminal according to claim 10, wherein the transaction processor is configured to generate the transaction proposal from a credential, and to generate the transaction completion request from the credential and the transaction pointer.
 12. The payment terminal according to claim 11, wherein the transaction processor is further configured to authenticate the payment terminal to the network gateway using the credential and, in accordance with an outcome of the point-of-sale authenticating, to download from the network gateway a list of transactions available from the network device, and to select the proposed transaction from the list of available transactions.
 13. The payment terminal according to claim 10, wherein the payment terminal is coupled to an electronic cash register, and the transaction proposal response includes a payment image associated with payment particulars for the proposed transaction, and the transaction processor is configured to transmit the payment particulars over the payment network by rendering the payment image, and receiving the payment particulars from the electronic cash register after input of the rendered payment image into the electronic cash register.
 14. A computer-readable medium comprising computer processing instructions stored thereon for execution by a payment terminal, the computer processing instructions, when executed by the payment terminal, causing the payment terminal to perform the method of claim
 1. 15. A method of completing a transaction with a payment terminal, comprising: a network gateway receiving from the payment terminal a transaction proposal identifying particulars of a proposed transaction with a network device, and transmitting to the payment terminal a transaction proposal response in response to the transaction proposal, the transaction proposal response specifying a pointer to the proposed transaction and including an indication of payment particulars for the proposed transaction, the network gateway being configured to authenticate to the network device via a communications network comprising the network device; the payment terminal using the indication of payment particulars to effect payment for the proposed transaction, and transmitting a transaction completion request to the network gateway, the transaction completion request including the pointer and requesting completion of the proposed transaction with the network device; and the network gateway generating a transaction request message from the transaction completion request, and transmitting the transaction request message to the network device via the communications network, the transaction request message identifying the particulars of the proposed transaction.
 16. The method according to claim 15, wherein the payment terminal generates the transaction proposal from a credential, and the network gateway generates the transaction request message from the credential and the transaction pointer.
 17. The method according to claim 16, further comprising the network gateway authenticating the payment terminal using the credential, and, in accordance with an outcome of the terminal authenticating, downloading to the payment terminal a list of transactions available from the network device, the payment terminal selecting the proposed transaction from the available transactions.
 18. The method according to claim 15, further comprising the network gateway receiving from the network device a transaction completion image in response to the transaction request message, and transmitting the transaction completion image to the payment terminal in response to the transaction completion request, the transaction completion image providing a confirmation of completion of the proposed transaction. 